The Evolution of the Exchange Rate from “Sacrosanct” Parity to Flexible Monetary Policy Instrument
Deutsche Bundesbank’s refusal to continue supporting the dollar at a fixed rate after the dollar nose-dived on March 1, 1973 triggered off an avalanche in the international monetary landscape. It resulted in the collapse of the Bretton-Woods-system of fixed parities and in the introduction of the mixed system of free floating and the European “snake”.
KeywordsEurope Defend Abate OECD Milton
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